Success Roar Classes

Users of Accounting Information

Users of Accounting Information - Success Roar Classes

Who are the users of accounting information and what their needs?

  1. Users of accounting information are those groups of people who are interested in the financial information of the business.
  2. Users can be categorized into two categories-
    1. Internal users-
      • These are the persons who have a direct interest or involvement in the business for example owners, management, etc.
      • They use external reports (Profit and Loss Account, Balance Sheet, etc.) as well as unpublished internal reports (Payroll, reasons for losses, wastage of stock, etc.) for their various needs.
    2. External users-
      • These are the person outside of the business and does not have any direct involvement in the business but have any future or present interest in the business.
      • They do not have access to internal reports of the company hence they use external reports related to the company for various decision making.

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